Innovative Solutions for Sustainability ABENGOA. Telvent and Transmissions Transactions Update. 3 rd June, 2011

Transcription

1 Innovative Solutions for Sustainability ABENGOA Telvent and Transmissions Transactions Update 3 rd June, 2011

2 Forward-looking Statement This presentation contains forward-looking statements and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. Such statements reflect the current views of Abengoa with respect to future events and are subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Abengoa to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which Abengoa does business, changes in interest rates, changes in inflation rates, changes in prices, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Abengoa does not intend, and does not assume any obligations, to update these forward-looking statements. 2

3 Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 3

4 Highlights $40/share 36% Offered price for 40% of Telvent Premium over 90 day average price 344% Premium over IPO 485M Value of sale of transmission power lines to CEMIG 50% 1,430M >25% Stake in new JV with CEMIG as growth vehicle in transmission lines in Brazil and LatAm Reduction of net debt Reduction of net debt 4

5 Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 5

6 Executive Summary Sale of Telvent s stake Agreement with Schneider Electric to sell 40% stake at $ 40 per share ($545 M). Implies an Enterprise Value of 1,360 M Simultaneously Schneider will launch a tender offer to all minority holders at the same price Net cash inflow of 421 M and consolidated net debt reduction of approx. 774 M Gain on transaction in the range of 135 M to 145 M (impact in net income, which will depend on FX transaction cost and net book value at closing) Represents an important premium over current trading price and over comparables (x10 times Ebitda vs 7.3 average of the sector) 6

7 Telvent Transaction Rationale of Transaction Favorable transaction for Abengoa, Telvent s minority shareholders, and for Telvent and its employees In line with strategy of narrowing focus on core businesses (will simplify analysis of E&C business) In line with financial strategy to deleverage balance sheet and crystallize value for shareholders Schneider Electric presents a solid and attractive project for Telvent, creating a great opportunity for Telvent employees Transaction subject to approval from EU and US competition authorities 7

8 Telvent Transaction Superior Returns Telvent share price and EBITDA performance since IPO Cash-on-cash: 4x (1) 2011 Gain of M Transaction value US$40/share 502m (1) +36% premium over 90 day average 125m Invested Capital Cash Returns Opportunistic and profitable sale crystallising significant capital gains for our shareholders... (1) Includes dividends and partial sales in June 2009 ( 46m) and December 2009 ( 73m) 8

9 Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 9

10 Executive summary Sale of transmission lines in Brazil to TAESA (Cemig) 100% sale of NTE (386 km) and sale of 50% sub holding including STE, ATE, ATE II and ATE III (2,132 Km) 485 M offer in cash, that represents: - Reduction of consolidated total net debt of approx. 656 M - Abengoa s IRR: 12,7%, 19,0% (including EPC margin) - Net gain of 27 M - 30 M Creation of future growth vehicle for investment opportunities in Brazil and rest of LatAm Continued commitment with Brazil, where we will maintain 6,700 Km in transmission lines 10

11 Operation structure (i) 100% NTE sale and (ii) creation and sale of the 50% sub holding that controls STE, ATE, ATE II and ATE III III Investment Funds 48% (*) 49% (*) ABENGOA ABENGOA 485 M TAESA 100% 50% 50% 100% 100% c c Subholding 100% NTE STE ATE ATE II ATE III Abenor Araucana Huepil Palmucho ATE IV VII Manaus Norte Brasil Linha Verde Lote I Redesur ATN ATS Redesur ATN ATS Abenor Araucana Huepil Palmucho ATE IV VII Manaus Norte Brasil Linha Verde Lote I STE ATE ATE II ATE III Total: Km NTE Total: 386 Km Total: Km Total: Km Brazil: Assets on operation Assets under construction Assets under development (*) 3% remaining currently is trading on the Brazilian Stock Exchange 11

12 Returns Analysis Sale price values assets at a x1.1 book value and gives a 12.7 IRR (19% with EPC margin) (M ) Shareholder Equity % Sale Cemig offer 100% offer Price/BV (Equity) Net Debt EV Offer EV/ EBITDA NTE % x x Sub holding % x x Total x 311 1, x Abengoa s IRR Concession IRR EUR NTE 26.62% Sub holding 11.44% Total 12.68% IRR with EPC margin EUR NTE 34.85% Sub holding 17.11% Total 18.98% Legend: Currency Exchange BRL/ 2,21 and for 2011 BRL/ 2,35. 12

13 Brazilian portfolio after operation After the sale Abengoa holds in Brazil an asset portfolio of 6,700 Km Brazil km 108 Longitude (Km) Abengoa % Start up Yr to end of concession Lote I % Manaus % Linha Verde % Norte Brasil 2,410 51% STE % ATE % ATE II % ATE III % ATE IV % ATE V % ATE VI % ATE VII % Sub holding with Cemig Km Development Construction Operation 13

14 Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 14

15 Cash & Net Debt impact (M ) Impact on corporate cash (*) Impact on consolidated net debt (*) 1. Transmission Lines Proceeds from sale 485 Total effect on cash 485 Proceeds from sale (485) N/R net debt (171) Total effect on net debt (656) 2. Telvent 2. Telvent Proceeds from sale 384 Internal loan repayment 51 Expenses, taxes & other (14) Total effect on cash 421 Proceeds from sale (384) Expenses, taxes & others 14 Telvent net debt (corporate) (404) Total effect on net debt (774) 2. Total Telvent Total 906 Total (1,430) 906M total corporate cash effect 1,430M reduction effect on consolidated net debt (*) Impact calculated on May 31, 2011 balances. Actual amounts may vary depending on FX and net book value of assets at closing 15

16 Reinforced Capital Structure Ensuring Abengoa s balance sheet strength M Dec 2010 Dec 2010 Proforma Var Var (%) Corporate Debt 5,063 4,722 (341) (6.7) % Corporate Cash, Equiv & SFTI (2,766) (3,625) % Total net corporate debt 2,297 1,097 (1,200) (52) % N/R Debt 4,050 3,761 (289) (7) % N/R Cash Equiv & SFTI (1,131) (1,058) (73) (6.5) % Total net N/R Recourse debt 2,919 2,703 (216) (7.4) % Total Net Debt 5,216 3,800 (1,416) (27) % Total consolidated EBITDA LTM (220) Total corporate EBITDA LTM (129) Total Net Debt/ Total EBITDA 5.5x 5.3x Total Net Debt/ Total EBITDA (excluding debtfrompre operational activities) (1) 3.3x 2.4x Corporatenet debt/ CorporateEBITDA (2) 3.5x 2.1x (1) Bank and bond facilities defines Corporate EBITDA as EBITDA excluding Non-recourse + R&D costs 16

17 Flexibility to face debt maturities Corporate Debt Maturity ( M) 2010 Telvent Revolving WC facilities Convertible Bonds ABG Corporate Debt ABG Total corporate debt ,144 5,153 Total corporate cash Dec 2010 Telvent cash position Dec 2010 cash positionv 2, , , , , ,406 Cash

18 Flexibility to face debt maturities Post Telvent + Transmission Sale pro-forma Corporate Debt Maturity ( M) (2010 proforma) Revolving WC facilities Convertible Bonds ABG Corporate Debt ABG ,144 Total corporate cash 3,614 Total corporate debt 4,769 Telvent cash effect* 421 Cemig cash effect cash position 2,708 1,399 1, ,406 Cash

19 Profit and Loss Year ended Dec 31, 2010 ( M) Abengoa Historical Consolidated 2010 Telvent GIT Pro Forma Excluding Telvent NTE, STE and ATEs Pro Forma Consolidated 2010 Revenue 5,566 (737) 4,829 (111) 4,718 EBITDA 942 (130) 812 (90) 722 Operating Profit 622 (73) 549 (72) 477 Finance Cost Net (368) 21 (347) 11 (336) Profit before Tax 263 (53) 210 (60) 150 Total Profit Attributable to parent company 207 (22) 185 (35) 150 Quarter ended March 31, 2011 ( M) Abengoa Historical Consolidated Q Telvent GIT Pro Forma excluding Telvent NTE, STE and ATEs Pro Forma Consolidated Q Revenue 1,656 (160) 1,496 (30) 1,466 EBITDA 254 (24) 230 (25) 205 Operating Profit 187 (15) 172 (20) 152 Finance Cost Net (132) 10 (122) 0 (122) Profit before Tax 56 (6) 50 (19) 31 Total Profit Attributable to parent company 56 (2) 54 (15) 39 Impact on Net Income from Gain on Sale

20 New estimates Revised estimates Revise 2011 revenue estimates to 5,800 M - 6,000 M Revise 2011 Ebitda estimates to 940 M M Revise 2013 Ebitda target to 1,300 M (>2.5x 2009 pro-forma Ebitda)

21 Highlights $40/share 36% Offered price for 40% of Telvent Premium over 90 day average price 344% Premium over IPO 485M Value of sale of transmission power lines to CEMIG 50% 1,430M >25% Stake in new JV with CEMIG as growth vehicle in transmission lines in Brazil and LatAm Reduction of net debt Reduction of net debt 21

22 Soluciones Innovadoras para el Desarrollo Sostenible